Retired household income remains steady

Retired household income was largely unaffected by the economic downturn, according to the Office for National Statistics (ONS).

However, state pension income activity has changed over the last 16 years with retired households now receiving their retirement income from private pensions and annuities

The ONS found that state pension was the largest source of income for retired households until 1999/2000. The proportion of retirement income coming from cash benefits including the state pension decreased from 65% in 1977 to 47% in 2015. Conversely, the proportion coming from private pensions and annuities increased from 45% to 80% between 1977 and 2014/15.

Between 2007/08 and 2014/15, the median income of retired households rose by £1,500 (7.7%) while in contrast, non-retired households income remained at £900 (3.1%) below its level in 2007/08.

Since the economic downturn in 2007/08, incomes of retired households increased in comparison to non-retired households.

Median income for retired households rose to £21,000 in 2014/15, £1,500 more than in 2007/08. In contrast, income for non-retired households was £2,600 lower in 2012/13 than in 2007/08.

Since 2012/13, the value of income for non-retired households has risen to £28,300, but remains £900 below the economic downturn levels (£29,200).